Forex today witnessed softer risk tones following Friday’s stand-off between the US and China on the trade talks and weekend’s tweets from the US President Trump, escalating trade war risks.

The safe-haven Yen reversed Friday’s corrective slide against its American peer, sending USD/JPY to 109.60 lows. EUR/USD pair traded in a tight range below the 1.1250 level amid subdued gold prices, as trade tensions weighed. GBP/USD remained better bid around the 1.30 handle despite the renewed Brexit jitters and negative risk sentiment.

Following plenty of US-China trade war-related headlines over the weekend, the EUR, GBP traders are poised for a quiet start to the new week. Both the EUR and NA calendar remain data-dry for today, with the US-China trade developments induced risk-on/off sentiment and USD dynamics to remain the main market drivers. Meanwhile, the ongoing uncertainty around the Brexit deal and PM May’s resignation will also continue to weigh on the investors' sentiment. In absence of any economic releases, traders will keep an eye to the speech by FOMC Vice President Clarida due at 13:10 GMT for fresh trading impulse.

Oil futures were mixed on Monday, with U.S. crude edging lower, as investors and traders fretted over global economic growth prospects amid a standoff in Sino-U.S. trade talks. The trade conflict between the world's top two economies escalated on Friday, with the United States hiking tariffs on $200 billion worth of Chinese goods after President Donald Trump said Beijing "broke the deal" by reneging on earlier commitments made during months of negotiations.

Gold has reversed its gains in the early session today, and currently trading close to $1,283, from the earlier $1,288 highs, as US-China trade war escalation setting risk-off tone to trading week start.